UPDATE: Itau BBA Downgrades Grupo Televisa to Underperform
In a report published Wednesday, Itau BBA downgraded its rating on Grupo Televisa, S.A.B. (NYSE: TV) from Market Perform to Underperform.
Itau Unibanco noted, “We continue to believe that Televisa's valuation is prone to a gradual de-rating from current levels as, among other factors, the telecom business gains relative weight within Televisa's portfolio. However, in our YE13 fair value we still assume that valuation multiples remain close to current levels, as Televisa may continue to be favored by the shortage of high-liquidity alternatives in the Mexican market. Our YE13 fair value estimate implicitly assumes a 7.9x FV/EBITDA and 17.8x P/E on 2014 forecasts, while we currently see Televisa trading at 8.1x FV/EBITDA and 17.7x P/E on a 12-month forward-looking basis.”
Grupo Televisa, S.A.B. closed on Tuesday at $21.91.
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